As the Thanksgiving season approaches this year, we on the Board face a familiar question. How can we adequately express our gratitude for the support you have given to help make the Minnesota Planned Giving Council one of the finest Council’s in the Country?
In light of the scope and impact of your participation, the words “thank you” seem frail by comparison. In relation to the time you spend attending our meetings and conference, your volunteer commitments and your financial support, even my most heartfelt expressions of gratitude fall short.
Because of your efforts for spreading the word regarding charitable giving and your commitment to helping us discuss the benefits of planned gifts, more and more donors are learning about the benefits of an estate gift, life income gifts and using retirement assets/life insurance to help their respective non-profits. In addition, partnering with the annual fund and major gift officers within our organizations is leading to an increase in the number of planned gift commitments that are being discussed and generated. This is great news for donors and our charitable organizations.
Moreover, because of these discussions the Minnesota Planned Giving Council has had an increase in the number of people attending our breakfast and educational seminars, and those that attended this month’s Annual Conference. Although our sponsorships and exhibitors were down from last year we still feel fortunate to have attracted the number of companies that we did. In all, this year has been a success.
The board of the Minnesota Planned Giving Council thanks you for your participation. You have made such an impact. You have helped touch so many lives.
In working with donors I am still amazed at the generosity of the individuals I meet, even in these difficult economic times. And what is even more amazing are the thank yous I personally receive after a donor makes a gift to my organization. I’m sure you feel as I do, the kind of difference you are making as a result of your work in the non-profit sector. This is the power and beauty of gift planning. This is why I am so thankful for being a gift planner, and a member of our Council.
As you reflect on the past year, keep in mind that your partnership helped make each event possible. By becoming and renewing your membership, volunteering with a committee, and attending the seminars and conference, you made an impact that will resound throughout our communities. As you know, MPGC depends on supporters like you.
To this end, I would like you to consider recruiting one new member into the Council in 2010. Second, I would request that you make every effort to attend our five seminars throughout the year and the year-end Annual Conference. Finally, I would ask you to become a member of a committee and share with our Council your gifts and graces. Your support is an investment that is bound to bear fruit as we strive to strengthen our Council in 2010.
As my term as Chair of the Council comes to an end, I give thanks to all of you for your friendship and counsel throughout the year. And I want to once again thank Gary Hargroves, the 2009 Clinton A. Schroeder Award recipient, for being a mentor to me over these past 9 years. Gary is an individual and gift planner that we all can aspire to be.
By Bradley O. Reiners, Office of Gift Planning, Mayo Clinic
On Monday, November 2, 38 individuals, mostly new to planned giving, attended Craig Wruck's presentation of MPGC's "A Brisk Walk Through the Basics" at the St. Paul RiverCentre. This was the second public presentation of "Brisk Walk" for 2009 – the first was last May at Concordia University (St. Paul) with a similar number of attendees. Craig also presented "Brisk Walk" four times for Mayo Clinic at sites in Minnesota, Arizona and Florida. Regardless of site or audience, the feedback was very positive! Although attendees were mostly new to planned giving, several sessions included attendees returning for a refresher. Some of the returning attendees first took the course from Bob Evenson, its founder, many years ago. As with the new attendees, feedback from this group was also very positive. MPGC will offer "Brisk Walk" at least twice during 2010, with the first session tentatively planned for May 2010 and the second the day prior to the MPGC conference. Future scheduling information will be posted on the MPGC web site as it becomes available.
The Minnesota Planned Giving Council recently presented the Clinton A. Schroeder Distinguished Service award to Gary Hargroves, Director of Major & Planned Gifts at Courage Center. The award was presented on November 4 at the Saint Paul RiverCentre during the MPGC annual conference.
Clinton Schroeder (left) presented Gary Hargroves with the Clinton A. Schroeder Distinguished Service Award. In addition to his respected MPGC colleagues, Hargroves had many friends and family in attendance for the presentation.
Established in 2008, the Clinton A. Schroeder Distinguished Service Award recognizes and memorializes the contributions of Clinton A. Schroeder to the charitable and planned giving community in Minnesota and across the nation.
One of the many letters of support for Hargroves’ nomination said, “Gary Hargroves is an extraordinary person in every respect. He has the technical skills necessary for a qualified planned giving officer, but more importantly he has the patience, warmth, humility, and the highest ethical standards that garner deep respect from both donors and colleagues. Gary is among the top leaders in the field of charitable gift planning, not only in Minnesota but in the entire country; his exceptional leadership and outstanding service to the field is unparalleled. He has inspired many and is a role model for future generations. His service to donors may be his quintessential gift.”
MPGC is the professional association for people whose work includes developing, marketing and administering charitable planned gifts. The organization is dedicated to the education and training of planned giving specialists, fundraisers and professional advisors, and to raising public awareness of charitable giving overall and planned giving specifically.
Organization Spotlight – HBH Consultants with Diane Hennes, Founding Partner and Principal
Interview by Justin Palecek, Thrivent Financial for Lutherans
Without going into depth, describe the key points about your services for development departments and staff.
HBH Consultants is a firm of three consultants – co-founders and principals Bob Bunger, Dayton Hultgren and me – and adjunct marketing specialist Sarah Libbon of Westmoreland Flint agency. We apply a “360-degree” view to help our clients succeed. We provide the following services:
Planning – strategic, business, communication and marketing
Developing comprehensive fund development programs
Positioning (feasibility) studies
Prospect research and grant writing
Organizational assessments and program evaluation
Guiding capital fundraising campaigns
Board training and development
Executive coaching and mentoring
Custom-designed continuing education programs
Does the size of the development department matter when seeking out your services?
No. We work with not-for-profits at every stage, from volunteer-led or start-up programs to mature organizations.
You have described your primary services above, can you describe the types of assistance your organization provides (i.e., workshops, one-on-one consulting, data analysis)?
We provide workshops that are custom-designed for individual organizations as well as more in-depth seminars such as the Board Leadership Academy and Benedictine Health System Foundation’s Gift Planning Collaborative. We also provide individualized services such as consulting with boards of directors and custom-designed continuing education for staff.
What kinds of assistance has your organization been providing most as a result of a down economy?
Assisting with business and strategic planning, employee evaluation, custom workshops, and continuing to help organizations to improve their capacity building programs through strategic relationship building and fund development.
Describe what an organization should consider when hiring a development consultant.
The Giving Institute (www.givingusa.org) has an excellent list. We recommend that the organization make sure that the fit between the consultant’s skills and work style fit well with the organization, check references, and create a written agreement and timeline for the work that is clear to everyone concerned. As consultants, we also want to be sure that our services are a good fit for the organizations we support.
What is the most rewarding part of your job as a consultant to non-profits?
Helping not-for-profit organizations set and reach challenging goals.
By Tricia Bunten, Senior Development Director, University of Minnesota-Duluth
Leave a Legacy is a campaign that encourages people from all walks of life and all income levels to think beyond their lifespan when doing good works. Leave a Legacy volunteers across the country are encouraging members of their communities to leave charitable bequests of any size in their wills and estate plans.
Leave a Legacy is an optional public awareness activity of Partnership for Philanthropic Planning (formerly the National Committee on Planned Giving) affiliated planned giving councils. Recently Leave A Legacy activities have been happening in various cities throughout Minnesota but no centrally organized effort or coordination. The MPGC has formed a committee to re-energize the Leave a Legacy program and to be a central source for anyone in the state wanting information. Watch for a new page on the MPGC website about Leave a Legacy activities and resource materials.
If you know of any Leave a Legacy groups or activities that have been organized within the state, please forward information to me via email. We would like to be able to include links on the new webpage for any Leave a Legacy groups within the state and help promote your efforts. Also watch for information about how you can become active in Leave Legacy activities in the Twin Cities and perhaps other areas in Minnesota.
By Ruby Pediangco, JD, Minnesota Orchestral Association Planned Gifts Officer
At the Minnesota Orchestra we have both a Twitter account and a Facebook page. These social networking sites are maintained by our marketing department to connect with our patrons, generate buzz about the Orchestra, and share exciting ticket promotions. Many nonprofits are establishing themselves on the Internet, and development departments are served well when such sites generate new donors and heighten stewardship of existing ones. Beyond these results, I didn't see much impact either Twitter or Facebook had on my role as the Planned Gifts Officer at the Orchestra.
After all, no one in marketing had ever asked me to “tweet” about the American Council on Gift Annuities' decision to reaffirm the gift annuity rate table. Nor had I ever been asked to write on the “wall” of our Facebook page that legislation is afoot that would cap charitable tax deductions at 33% (35% for those whose tax brackets would actually increase to 36% or 39.6% in 2011). Surprising, I know, but a reality nonetheless.
But then one day our webmaster e-mailed to me a negative “tweet” by an individual who took issue with how his parent's (our donor) planned gift at the Orchestra was being handled. It was then I realized I had been thinking about social networking sites in a vacuum. While they are available for nonprofits to use to reach their supporters in ways never imagined a few years ago, these sites originated for personal use. Sites like Twitter and Facebook enable individuals to share their opinions with their family, friends, and complete strangers about anything – which is a boon for nonprofits when the information disseminated is positive, but a scourge when it is not.
Any development professional who has worked long enough inevitably will run into a donor who is unhappy. Typically, we either receive a strongly worded letter or an irate phone call, prompting our work to repair the relationship. Now with the Internet, donors have a vast canvas upon which to air grievances.
When our webmaster shared the uncomplimentary tweet posted by the donor's son on the son's personal Twitter account, I admit a panic ran within me. I did nothing improper with respect to the donor's planned gift, but it didn't matter. Factors outside of my control affecting the situation upset the donor, which led to an emotional response by the son. As a result, a criticism about the Orchestra was now floating out in cyberspace for an untold number of people to read and believe.
The experience, while unfortunate, did produce valuable results and insights. First, our organization considered the various options as a response to this Internet complaint, an exercise which I believe held as much worth as vetting gift acceptance policies. Second, no matter how sophisticated the means by which a donor (or in our particular case, a donor’s son) chooses to express a rant, an “old fashioned” response by phone and/or letter still felt like the most appropriate response to the situation. Finally, having a savvy webmaster, who understands the myriad of Internet social networking sites and knows how to search them for potentially damaging comments about your organization, is key. Had our webmaster not brought the offending tweet to development's attention, we would never have discovered it, nor had the opportunity to respond.
The Orchestra took steps to repair the situation once it learned the extent of the donor's dismay, and the relationship with the donor has since improved. Despite this, and the fact that the Orchestra also reached out to the donor's son, the offending tweet still remains out in cyberspace. How long it will remain is unknown and quite frankly beyond our control. Rather, the Orchestra's main focus continues to be the stewardship of the donor with the hope that perhaps the donor's positive experience will ultimately give rise to a new tweet that will replace the old one.
As planned giving professionals, we deal with the most technical and, at times, misunderstood gift vehicles. This makes what we do vulnerable to misinterpretation and, in some unfortunate situations, unwarranted criticism. Understanding that our donors can and will use the Internet to vent their frustrations is a very real aspect of our work. It would serve development departments well to become familiar with how their organizations patrol the Internet and consider how it would handle an unflattering post, knowing that their organization's valuable reputation can be undermined with as little as a sentence and a key stroke.
(The specific circumstances of this situation have been modified to protect the confidentiality of the participants.)
Strategies for Creating Legacy Gifts in a Tough Environment
By Robert Boucher, Foster Klima & Company, LLC, Minneapolis, MN
You may have encountered similar feelings from your donors as we have in working with our clients this year. The predominant ones we have experienced are that donors are not inclined to gift assets that have depreciated, but also that they are more desirous of someday making a planned gift because they understand the need is greater than ever.
We have worked hard to offer our clients options for making planned gifts that do NOT require them to pledge or gift any depreciated assets now. These strategies revolve around leveraging the currently low-yielding assets many donors are holding. Here are two of the strategies we have found to be especially popular with donors this year.
Our case study will use a client named Marjorie Donor. Marjorie is 65 and has a net worth of $3,000,000, including $200,000 in a money market account that currently yields 1.5%. She considers this account available for emergencies, but knows that because she has a good income in retirement and no debt, the account most likely will be inherited by her children. Last year she considered creating a Charitable Remainder Trust to benefit her favorite cause, or leaving them a $100,000 bequest.
Because of the declines in her portfolio and, more importantly, those of her children’s retirement and college education accounts, she is now unwilling to do so. The following two options were presented to Marjorie. The first was to reposition $100,000 of her money market account and do the following:
Use the $100,000 to purchase a charitable gift annuity from a financially stable nonprofit organization. The annual income generated is $5,300. Assuming Marjorie is in a 30% combined federal and state tax bracket (along with the favorable tax treatment of a charitable gift annuity payout) her annual Spendable Income would be $4,718.01 versus $1,050 from the money market account.
In order to secure her children’s inheritance, Marjorie would purchase a $100,000 life insurance policy with secondary death benefit guarantees from a highly rated insurance company. A sample premium for such a policy would be $2,088.92 (assumes Marjorie is a non-smoker and in average health).
Subtracting the insurance premiums and the original $1,050 she was receiving from the money market account (after taxes) leaves Marjorie with $1,579.15. This offers Marjorie several attractive options: She could enjoy having 50% more spendable income; she could purchase more life insurance to increase her children’s inheritance, or create another legacy gift for her favorite cause.
The remaining $1,579.15 could allow her to create a legacy gift of approximately $80,000. If Marjorie has the organization become the owner and beneficiary of the policy, she could gift them the premiums and possibly receive a tax deduction. This would potentially allow her to create a legacy of approximately $108,000.
It should be noted we have not used any of the $33,125.13 charitable deduction Marjorie would receive for establishing the gift annuity in these scenarios. In her tax bracket, this could put almost $10,000 back in her pocket to be used as she desires.
The second option for Marjorie is to retain the $100,000 and simply use the $1,500.00 it is generating to create a legacy gift. She could leave a legacy of approximately $75,000 using the life insurance policy. We have found that showing donors how they can create the legacy gift they have dreamed of without having to pledge or donate depreciated assets is a win-win proposal that donors respond to very favorably.(Especially this year!)
Bob Boucher is a financial advisor with Foster, Klima & Company in Minneapolis. His practice focuses on educating clients and nonprofit organizations about how ordinary donors can make extraordinary gifts by strategically choosing the right gifting vehicle(s) and using them to leverage the assets they have.
The ideas expressed in articles are solely the opinions of the authors and do not represent any position taken or advice given by MPGC. Any calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice.
Member Profile: Paul Deakins, Presbyterian Homes Foundation
By Lisa Barton, Director of Development, William Mitchell College of Law
Paul Deakins is currently Director of Development for the Presbyterian Homes Foundation, a position he has held for nearly one and a half years. Presbyterian Homes provides a full spectrum of housing for over 10,000 older residents in the Twin Cities, including senior living, assisted living, memory care, and skilled care. There are currently 30 communities in the Twin Cities area; Paul oversees the seven communities in the South Metro.
The majority of Paul’s work involves planned giving and major gifts in support of the larger mission, but he also serves as a fundraising consultant to communities wishing to do site-specific fundraising to enhance specific programs or projects. Most of the monies raised support mission benevolence (supporting seniors who have run out of funds to pay for their own care), endowments for chaplains and spiritual programs, as well as capital improvements.
Prior to joining the Presbyterian Homes Foundation, Paul worked with Shamineau Ministries, the Minnesota Medical Foundation, and the Evangelical Free Church of America. He has over 10 years of development experience and holds a bachelor’s degree in finance from Bethel University and a master’s degree in philanthropy and development from St. Mary’s University.
While Paul enjoys his development work and appreciates his work experiences and serves as a member of the MPGC Membership Committee, one of the most important experiences of his life was the four years he served as a stay-at-home dad to his three children: Grant 12, Lindsey, 9, and Madison, 5. Paul loved the experience and valued the time he was able to spend with his children. Paul, his wife Paula, and their three children now live in Plymouth.
Paul’s interests include running, downhill skiing and scuba diving. Last month, Paul and two friends made a trip to St. Maartin for a few days of “hard core” diving.
Richard Olson
MPGC President Richard Olson recently moved from Allina Hospitals and Clinics to accept a position at Benilde-St. Margaret’s School. His new email is rolson@bsm-online.org and phone is 952-915-4351.
Joe Thiegs
Joe Thiegs has left his position as Planned Giving Officer at the University of Minnesota Foundation to assume the position of Associate Director of Advancement at the University Minnesota Law School effective September 22. Joe is an alumnus of the Law School (J.D. ’99) and will remain a member of the University of Minnesota Development community. Joe can be contacted at thiegs@umn.edu.
Mark Parson
In early October, Mark Parsons left his position at the Minnesota Medical Foundation, where he had served as Associate Vice President of Development and Director of Gift Planning since September 2007, to pursue a new opportunity as Vice President of Development for Missouri Southern State University and executive director of the Missouri Southern Foundation. Having previously served as executive director and president for the California-Nevada United Methodist Foundation, Mark said he looked forward to returning to a similar role at Missouri Southern. He will be responsible to oversee fundraising and alumni relations for the university, including its athletic programs, scholarships and faculty endowments.
Lynn Praska
After 17 years of service to Hamline University, Lynn Praska is leaving for a new opportunity in the Planned Giving Office at the University of Minnesota Foundation. In her new role at the U of M, Lynn will work exclusively on planned gifts.
Now more than ever, it is important for MPGC members to keep current and share trends and valuable techniques with others. The Source e-newsletter is a great way to “get published” while helping inform members and friends of MPGC.
Whether it is a unique donor experience or an article regarding a proven giving strategy, we want to hear from you.
If you have an expertise or experience in the area that you want to share with the MPGC membership, contact Justin at justin.palecek@thrivent.com.
Submission Deadlines:
Winter 2010: January 30
Spring 2010: April 30
Help us make the MPGC newsletter the best it can be!
The ideas expressed in articles are solely the opinions of the authors and do not represent any position taken or advice given by MPGC. Any calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice.
Dear Minnesota Planned Giving Council Members,
Paul Deakins is currently Director of Development for the Presbyterian Homes Foundation, a position he has held for nearly one and a half years. Presbyterian Homes provides a full spectrum of housing for over 10,000 older residents in the Twin Cities, including senior living, assisted living, memory care, and skilled care. There are currently 30 communities in the Twin Cities area; Paul oversees the seven communities in the South Metro.